Concur Technologies, Inc. has a market cap of $3.34 billion; its shares were traded at around $61.92 with a P/E ratio of 168.8 and P/S ratio of 7.6. Concur Technologies, Inc. had an annual average earning growth of 14% over the past 5 years.
Highlight of Business Operations:International Revenues. Revenues from customers outside the United States represented 15%, 14%, and 13% of total revenues for 2012, 2011, and 2010, respectively. We expect continued growth in our international revenues, as our products and services continue to gain acceptance in international markets due to our GlobalExpense Acquisition, our investment in global distribution, and increased global awareness of our products. In 2012 the foreign currency impact had the effect of slightly decreasing our revenues. Historically, fluctuations in exchange rates have had a de minimis impact on our total revenues.
Revenues increased by 25.8%, or $90.3 million, in 2012 compared to 2011. This increase was primarily due to the growth in the number of customers for our subscription services as well as higher transaction volumes. The growth in the number of customers for our subscription services reflects higher market demand for our subscription services and high rates of retention of existing subscription customers. We believe this demand reflects the market s growing awareness of our integrated travel and expense management solutions and the increasing acceptance of outsourced services. Additionally, the foreign currency impact had the effect of slightly decreasing our revenues when compared to the same period a year ago.
Cost of operations expenses as a percentage of total revenues remained consistent at 28.1% in both 2012 and 2011. Cost of operations expense increased by 25.9%, or $25.4 million, in 2012 compared to 2011. The growth in absolute dollars was primarily due to an increase in personnel costs and related expenses of $14.2 million (driven by increased headcount of approximately 50% to support our growing customer base) and an increase of $4.0 million in share-based compensation. In addition, initial set-up costs that we incur and then amortize in connection with our subscription services increased by $4.8 million and allocated overhead and infrastructure costs increased by $1.9 million.
Systems development and programming costs as a percentage of total revenues remained consistent year over year. Systems development and programming costs increased by 25.9% or $9.0 million, in 2012 compared to 2011. The growth in absolute dollars was primarily due to an increase in personnel costs and related expenses of $6.0 million, driven by an increase in headcount of approximately 30%. Additionally, depreciation expenses increased by $3.5 million as we continued to upgrade and extend our service offerings and develop new technologies. The increases were offset by a decrease of $1.0 million in compensation expense associated with the TripIt Acquisition contingent consideration, primarily resulting from the decrease in the fair value of contingent consideration (see Note 4 of the Notes to Consolidated Financial Statements).
The effective income tax rate for 2012 was -74.2% compared to -25.9% for 2011. The negative effective tax rate for 2012 was primarily the result of losses in tax jurisdictions where we are not able to record a tax benefit, losses in tax jurisdictions where we have recorded a valuation allowance on deferred tax assets and the establishment of income tax reserves, partially offset by income from the revaluation of the contingent consideration which is not subject to income taxes, research and development tax credits, and earnings in lower-tax jurisdictions for which no U.S. taxes have been provided because such earnings are planned to be reinvested indefinitely outside the United States, measured against a pretax loss for the year.
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